Emerge Health International (MTWD) 10-K 21 Feb 19 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2016	Jan. 13, 2019
Document And Entity Information
Entity Registrant Name	METWOOD INC
Entity Central Index Key	32,567
Trading Symbol	mtwd
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		17,766,647
Entity Public Float		$ 329,101
Document Type	10-K
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Small Business	true
Entity Shell Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Current Assets
Cash and cash equivalents	$ 91,309	$ 87,315
Accounts receivable, net of reserve	201,502	129,712
Inventory	479,203	728,500
Other current assets	12,454	36,343
Total assets	784,468	981,870
Property and Equipment improvements
Leasehold Improvements	274,869	274,869
Furniture, fixtures and equipment	78,222	78,222
Computer and software	174,541	180,923
Machinery & Equipment	720,585	477,166
Vehicles	412,917	412,917
Land Improvements	67,958	67,959
Total property and equipment	1,729,092	1,492,056
Less accumulated depreciation	(1,199,154)	(1,134,549)
Net property and equipment	529,938	357,507
Other assets
Deferred tax asset, less valuation reserve	0	245,233
Total assets	1,314,406	1,584,610
Current liabilities
Accounts payable and accrued expenses	181,107	136,267
Accrued payroll expense	18,881	26,237
Note payable to related party	80,992	65,784
Total current liabilities	280,980	228,288
Commitments and contingencies Note 4
Stockholder's equity
Preferred stock (par $.001) 40,000,000 authorized and shares authorized 0 outstanding
Common stock (par $.001) 100,000,0000 authorized and 17,774,364 and 15,222,247 outstanding	17,775	15,222
Unissued common stock	0	53
Paid in capital	3,500,228	1,917,729
Accumulated deficit	(1,236,577)	(576,682)
Contra equity-prepaid rent	(1,248,000)	0
Total stockholders' equity	1,033,426	1,356,322
Total liaibliities and stockholders equity	$ 1,314,406	$ 1,584,610

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Jun. 30, 2015
Stockholder's equity
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	17,774,364	15,222,247
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	40,000,000	40,000,000
Preferred stock, shares outstanding	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements Of Operations
Gross sales	$ 1,781,062	$ 1,722,261
Cost of sales	1,113,748	929,437
Gross profit	667,314	792,824
Operating expenses
Advertising	26,513	25,682
Bad debt recovery	1,202	(1,094)
Depreciation	35,260	35,494
Insurance	44,519	34,362
Payroll expense	422,261	385,658
Professional fees	43,588	48,901
Rent related party	380,491	75,000
Repairs and Maintenance	52,495	0
Research and Development	5,700	7,491
Telephone	29,105	25,648
Vehicle	19,558	20,001
Other	52,832	125,380
Total operating expenses	1,113,524	782,523
Operating income (loss)	(446,210)	10,301
Other Income (expense)
Interest	(4,370)	0
Gain on sale of asset	28,682	0
Other Income (expense)	7,235	(10,088)
Total Other Income (expense)	31,547	(10,088)
Net income (loss) before taxes	(414,663)	213
Income taxes	(245,233)	931
Net (loss)	$ (659,896)	$ (718)
Basic loss per share	$ (0.04)	$ 0
Weighted number of shares outstanding	17,776,647	15,221,647

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands	Common Shares	Common Shares not yet issued	Additional Paid-in Capital	Prepaid Rent	Retained Earnings	Total
Beginning Balance, Shares at Jun. 30, 2014	15,222	8
Beginning Balance, Amount at Jun. 30, 2014	$ 15,222	$ 8	$ 1,899,773		$ (575,862)	$ 1,339,133
Common Stock issued and adjustment of common shares not issued, Shares		45
Common Stock issued and adjustment of common shares not issued, Amount		$ 45	17,956			18,000
Net loss					(718)	(718)
Ending Balance, Shares at Jun. 30, 2015	15,222	53
Ending Balance, Amount at Jun. 30, 2015	$ 15,222	$ 53	1,917,729		(576,681)	1,356,322
Common Stock issued, Shares	153	(53)
Common Stock issued, Amount	$ 153		24,900			25,000
Common stock issued for rent, Shares	2,400
Common stock issued for rent, Amount	$ 2,400	$ 0	1,557,600	(1,560,000)		0
Amortization of prepaid rent				312,000
Net loss					(659,896)	(659,896)
Ending Balance, Shares at Jun. 30, 2016	17,775	0
Ending Balance, Amount at Jun. 30, 2016	$ 17,775	$ 0	$ 3,500,227	$ (1,248,000)	$ (1,236,577)	$ 1,033,426

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Consolidated Statements Of Cash Flow
Net loss	$ (659,896)	$ (718)
Adjustments to reconcile net loss to net cash provided by (used in)
Depreciation	81,338	62,747
Gain on insurance settlement	(28,682)	0
Allowance for inventory obsolesence	33,702	0
Amortization of prepaid rent	312,000	0
Provision for deferred income taxes		930
(Increase) decrease in operating assets
Accounts receivable	(90,704)	19,964
Inventories	(27,823)	86,692
Other current assets	23,889	8,008
Deferrd tax asset	245,233	0
Increase (Decrease) in liabilities
Accounts payable	59,106	(74,923)
Accrued payroll	12,501	0
Net cash provided (used) for operations	(39,336)	102,700
Investment activities
Property, plant, equipment purchases	(10,351)	(27,440)
Proceeds from disposal of property, plant & equipment	28,682	4,250
Net cash provided (used) for investment activities	18,331	(23,190)
Financing activities
Proceeds from sale of common stock	25,000
Related party advances	0	(29,031)
Total cash provided financing activities	25,000	(29,031)
Increase (decrease) in cash	3,995	50,479
Beginning cash	87,315	36,836
Ending Cash	91,309	87,315
Supplemental Disclosure of cash flow information
Interest paid	0	0
Income taxes paid	0	0
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Common stock issued for fixed assets	1,560,000	18,000
Capitalization of fixed assets from inventory	243,419	0
Notes payable related party advances through Accounts payable	32,000	0
Notes payable related party payments through accounts receivable	$ (16,792)	$ 0

ORGANIZATION AND OPERATIONS

ORGANIZATION AND OPERATIONS	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 1 - ORGANIZATION AND OPERATIONS	Metwood, Inc. ("The Company", “we”, “us”) was organized under the laws of the Commonwealth of Virginia on April 7, 1993. On June 30, 2000, Metwood entered into an Agreement and Plan of Reorganization in which the majority of its outstanding common stock was acquired by a publicly held Nevada shell corporation. The acquisition was a tax-free exchange for federal and state income tax purposes and was accounted for as a reverse merger. Upon acquisition, the name of the shell corporation was changed to Metwood, Inc. and Metwood, Inc., the Virginia corporation, became a wholly owned subsidiary of Metwood, Inc., the Nevada corporation. The publicly traded shell corporation had not had a material operating history for several years prior to the merger. The Company provides construction-related products and engineering services to residential customers and contractors, commercial contractors, developers and retail enterprises, primarily in southwestern Virginia

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES	Going Concern Our consolidated financial statements have been presented on the basis that we are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We have sustained significant operating losses which raises substantial doubt about the Company’s ability to continue as a going concern. During the year ended June 30, 2016, The Company incurred a loss from operations of $446,210 and has an accumulated deficit of $1,236,577. Management will continue its ongoing efforts to increase the customer base and seek lower cost suppliers to generate future profits. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. The basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business. Basis of Presentation Management's Use of Estimates from those estimates. Fair Value of Financial Instruments Cash and Cash Equivalents Accounts Receivable Inventory Property and Equipment Useful Life 2016 2015 Leasehold improvements 39 $ 274,869 $ 274,869 Furniture, fixtures and equipment 5 78,222 78,222 Computers and software 3 174,541 180,923 Machinery and equipment 10 720,585 477,166 Vehicles 5 412,917 412,917 Land improvements 39 67,958 67,959 Total property and equipment 1,729,092 1,492,056 Less accumulated depreciation (1,199,154 ) (1,134,549 ) Total property and equipment $ 529,938 $ 357,507 Impairment of Long-lived Assets Patents Revenue Recognition Income Taxes Income Taxes. A Research and Development Advertising Earnings Per Common Share During the future fiscal years the company will be required to issued up to fifty million shares of common stock to satisfy a convertible note entered into in July 2016. This note expires on June 30, 2020 and 10,000,000 shares of common stock can be issued in any year. Recent Accounting Pronouncements

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 3 - RELATED-PARTY TRANSACTIONS	The Company has executed a demand note with it’s controlling shareholder, Cahas Mountain, LLC, that Cahas Mountain will make available cash advances from time to time to bridge cash flow shortfalls. These advances are repaid to Cahas Mountain as cash flow allows. The unpaid balance due to Cahas Mountain at the end of each month is subject to an interest rate of 6% per year. At June 30, 2016 and 2015, advances payable to Cahas Mountain Properties of approximately $81,000 and 66,000, respectively. Accrued interest payable to Cahas Mountain Properties total approximately $19,000 and $15,000 for the years ended June 30,2016 and 2015, respectively. The Company recognized interest expense of approximately $4,000 and $6,000 for the years ended June 30, 2016 and 2015, respectively. Sales to Cahas Mountain, LLC was approximately $19,000 and $29,000. As of June 30, 2016 and 2015, the related accounts receivable totaled approximately $2,000 and $-0-, respectively. At June 30, 2015, The Company owed Cahas Mountain, LLC. $32,000.00 on an open account payable for a consulting fee.

COMMITMENT AND CONTINGENCIES

COMMITMENT AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 4 - COMMITMENT AND CONTINGENCIES	In prior years, The Company implemented a stock-based incentive compensation plan for it’s employees. Participating employees have an after-tax deduction withheld by the Company throughout the calendar year. As of December 31 of each year, the employee is considered vested in the plan, and The Company will match the participating employee’s withheld amounts. The Company may also make a discretionary contributions based upon pay incentives or attendance. Periodically, The Company will purchase restricted stock on behalf of the employee in the amount of their withholding , our match, and any discretionary contributions. This plan was discontinued in fiscal year 2015 and there are no liabilities for past contributions either in cash or unissued common stock. During the year ended June 30, 2005, The Company into as sales and leaseback transaction with a related party. The Company sold various buildings at the corporate headquarters which house it’s manufacturing plants, executive offices and other buildings for $600,000 in cash. The Company simultaneously entered into a commercial lease agreement with the related party whereby the Company is committed to lease back these same properties for $6,800 per month over a ten-year term expiring December 31, 2014. On July 1, 2015 a new lease was entered into with the related party. This lease terms have a term of five years and the monthly rental is $5,500 in cash, in addition the company issued common stock as part of the transaction, this portion of the lease is covered in NOTE 9. Future annual commitments under the current operating lease are: Payments Amortization of Contra equity in cash account Fiscal year end June 30, 2017 $ 66,000 $ 312,000 Fiscal year end June 30, 2018 66,000 312,000 Fiscal year end June 30, 2019 66,000 312,000 Fiscal year end June 30, 2020 66,000 312,000 Total commitments $ 264,000 $ 1,248,000 At June 30, 2016 and 2015, the Company had the following customer concentrations: Sales Accounts Receivable 2016 2015 2016 2015 Customer A 13 % 12 % 15 % * Customer B 11 % * 23 % * Customer C * * * 13 % Customer D * * * 15 % Customer E * * 20 % * *Amounts to less than 10%

EQUITY

EQUITY	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 5 - EQUITY	During the year ended June 30, 2016 The Company did not issue any preferred shares. The Company did issue 2,400,000 shares of common stock in connection with the prepaid rent as discussed in Note 10 and 45,000 for a vehicle. There are 100,000,000 shares of common stock authorized and at the year end there are 17,776,647 shares issued and outstanding. The authorized preferred stock is 40,000,000 shares and there are -0- shares of preferred stock issued and outstanding. If the convertible note that is covered in the subsequent events (Note 9) Is converted into common stock of The Company, an additional 50,000,000 shares of common stock could be issued, resulting in dilution of the current shareholders. When the contract of October 11, 2018 is completed (see Note 9) there will be an additional 30,000,000 shares issued to the principals of Emerge Nutraceuticals, Inc.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 6 - INCOME TAXES	The Company determined that the future use of a Deferred Tax Asset was no longer appropriate and therefore the Deferred tax Asset previously shown on the Balance Sheet has been expensed during this year as a line item on the Statement of operations. The decision was made that the earnings in the near term would not be sufficient to allow the utilization of the deferred tax asset. The difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate of 39% is as follows: Tax Tax 2016 Rate 2015 Rate Expected income tax benefit at statutory rate of 39% $ 162,000 39 % 0 0 % Permanent differences (126,000 ) (30 )% (3,000 ) (1.408 )% Change in valuation allowance 281,000 (9 )% 4,000 1,878 % Income tax expense (benefit) $ 245,000 59 % $ 1,000 469 % Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. Temporary differences, which give rise to a net deferred tax asset, are as follows: 2016 2015 Deferred tax assets: Tax benefit of net operating loss carry-forward $ 451,000 $ 435,000 Book and tax difference 75,000 55,000 Less: valuation allowance (526,000 ) (245,000 ) Net deferred tax asset $ 0 $ (245,000 ) The Company had a federal net operating tax loss carry-forward of approximately $1,141,000 as of June 30, 2016. The loss carry-forwards are available to offset future taxable income with the federal carry-forwards beginning to expire in 2020. At June 30, 2016 the deferred tax valuation allowance increased by $281,000. The realization of the tax benefits is subject to the sufficiency of taxable income in future years. The deferred tax assets represent the amounts expected to be realized before expiration. The Company periodically assesses the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible profits. As of June 30, 2016 and 2015, the Company established valuation allowances equal to the full amount of the net deferred tax assets due to the uncertainty of the utilization of the operating losses in future periods. For the years ended June 30, 2016 and 2015, no amounts have been recognized for uncertain tax positions and no amounts have been recognized related to interest or penalties related to uncertain tax positions. The Company has determined that it is not reasonably likely for the amounts of unrecognized tax benefits to significantly increase or decrease within the next twelve months. The Company is currently subject to a three-year statute of limitations by major tax jurisdictions.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 7 - LEGAL PROCEEDINGS	On June 27, 2016 a lawsuit was filed alleging breach of contract. The contract in question would have changed the control of the public company to a third party. Management has determined that judgment will be in the favor of the company, consequently no amounts have been accrued related to this matter. See note 9.

STOCKHOLDER_S EQUITY

STOCKHOLDER’S EQUITY	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 8 - STOCKHOLDER’S EQUITY	On July 1, 2015, the Company entered into a ten-year commercial operation lease with a company related through common ownership. The related party is Cahas Mountain Properties in which Robert Callahan, our Chief Executive Officer, is a Managing Member. The lease covers various buildings and property which house our manufacturing plant, executive offices and other buildings with a current monthly rental of $5,500.00. As part of the lease agreement The Company issued 2,400,000 of its shares with a fair value of $1,560,000 at the date of the agreement. This amount is recorded on our books as a contra equity account, and is amortized over the five year term of the lease. See note 4 for commitments and contingencies.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2016
Notes to Financial Statements
NOTE 9 - SUBSEQUENT EVENTS	In October 2017 the legal matter referred to in Note 8 was decided by a court and confirmed on appeal that the company was not in breach of contract. On August 18, 2016, the company executed a convertible note payable with Cahas Mountain, LLC. The note is for the amount of $50,000 and is payable on June 30, 2019. Interest is accrued at the rate of 8% and is payable on the expiration of the note. If the note is converted into common stock the interest is forgiven. The conversion factor of the note is at par value of $.001 and is convertible into a maximum of 50,0000,000 of common stock of the company, with 10,000,000 shares being convertible within any one year. On October 11, 2018, The Company entered into a contract with Emerge Nutraceuticals, a Florida corporation. When completed this contract will transfer all of Metwood’s assets and liabilities to it’s current controlling shareholder and Emerge Nutraceuticals, Inc. will become the reporting entity.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Policies)	12 Months Ended
	Jun. 30, 2016
Summary Of Significant Accounting Practices
Going Concern	Our consolidated financial statements have been presented on the basis that we are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We have sustained significant operating losses which raises substantial doubt about the Company’s ability to continue as a going concern. During the year ended June 30, 2016, The Company incurred a loss from operations of $446,210 and has an accumulated deficit of $1,236,577. Management will continue its ongoing efforts to increase the customer base and seek lower cost suppliers to generate future profits. The accompanying financial statements have been prepared assuming that the Company will continue as a going concern and do not include adjustments that might result from the outcome of this uncertainty. The basis of accounting contemplates the recovery of the Company’s assets and the satisfaction of liabilities in the normal course of business.
Basis of Presentation	The financial statements include the accounts of Metwood, Inc. (a Nevada corporation) and its wholly owned subsidiary, Metwood Inc. (a Virginia corporation) prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of the Securities and Exchange Commission. All significant intercompany balances and transactions have been eliminated.
Management's Use of Estimates	The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments	For certain of The Company financial instruments, none of which are held for trading, including cash, accounts receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities.
Cash and Cash Equivalents	For purposes of the Consolidated Statements of Cash Flows, The Company considers liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains cash in bank deposit accounts, which, at times, may exceed the federally insured limit of $250,000. The Company has not experienced any losses in such accounts and believe we are not exposed to any significant credit risk on cash and cash equivalents.
Accounts Receivable	The Company grants credit in the form of unsecured accounts receivable to it’s customers based on an evaluation of their financial condition. We perform ongoing credit evaluations of it’s customers. The estimate of the allowance for doubtful accounts, which is charged off to bad debt expense, is based on management’s assessment of current economic conditions and historical collection experience with each customer. At June 30, 2016 and 2015, the allowance for doubtful accounts was $8,362 and $6,539 respectively specific customer receivables are considered past due when they are outstanding beyond their contractual terms and are charged off to the allowance for doubtful accounts when determined uncollectible. For the years ended June 30, 2016 and 2015, the bad debt expense was $1,202 and $0 respectively.
Inventory	Raw material inventory, consisting primarily of metal and wood raw materials, is located on our premises and is stated at the lower of cost or market using the first-in, first-out method and was valued at $366,662. The total work in process inventory on the balance sheet date totaled $112,541. Inventory reserve totaled $76,607 and $42,905 at June 30,2016 and 2015, respectively.
Property and Equipment	Property and equipment are stated at cost less accumulated depreciation and are depreciated over their estimated useful lives using the straight-line method. Recovery periods range from three to thirty-nine years. Upon retirement or sale, the cost and related accumulated depreciation are removed from the consolidatedbalance sheet, and the resulting gain or loss is reflected in other income and expense. Maintenance and repairs are charged to operations as incurred. Useful Life 2016 2015 Leasehold improvements 39 $ 274,869 $ 274,869 Furniture, fixtures and equipment 5 78,222 78,222 Computers and software 3 174,541 180,923 Machinery and equipment 10 720,585 477,166 Vehicles 5 412,917 412,917 Land improvements 39 67,958 67,959 Total property and equipment 1,729,092 1,492,056 Less accumulated depreciation (1,199,154 ) (1,134,549 ) Total property and equipment $ 529,938 $ 357,507
Impairment of Long-lived Assets	The Company evaluates it’s long-lived assets for indications of possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability is measured by comparing the carrying amounts to the future net undiscounted cash flows which the assets are expected to generate. Should an impairment exist, the impairment would be measured by the amount by which the carrying amount of the assets exceeds the projected discounted future cash flows arising from the asset. There have been no such impairments of long-lived assets through June 30, 2016 and 2015.
Patents	The Company has been assigned several key product patents developed by certain Company officers. No value has been recorded in our financial statements because the fair value of the patents was not determinable within reasonable limits at the date of assignment.
Revenue Recognition	Revenue is recognized when goods are shipped and earned or when services are performed, provided collection of the resulting receivable is probable. If any material contingencies are present, revenue recognition is delayed until all material contingencies are eliminated. Further, no revenue is recognized unless collection of the applicable consideration is probable.
Income Taxes	Income taxes are accounted for in accordance with FASB ASC 740, Income Taxes. A
Research and Development	The Company performs research and development on our metal/wood products, new product lines, and new patents. Costs, if any, are expensed as they are incurred. For the year ended June 30, 2016, expenses were $5,700 and for the year ended June 30, 2015, expenses were $7,491.
Advertising	The Company expenses costs as incurred. However, certain expenditures are treated as prepaid (such as trade show fees) if they are for goods or services which will not be received until after the end of the accounting period. These costs are subsequently recognized as expenses in those periods in which the good or services are received.
Earnings Per Common Share	Basic earnings per share amounts are based on the weighted average shares of common stock outstanding. If applicable, diluted earnings per share would assume the conversion, exercise or issuance of all potential common stock instruments such as options, warrants and convertible securities, unless the effect is to reduce a loss or increase earnings per share. This presentation has been adopted for the years presented. There were no adjustments required to net income for the years presented in the computation of diluted earnings per share. During the future fiscal years the company will be required to issued up to fifty million shares of common stock to satisfy a convertible note entered into in July 2016. This note expires on June 30, 2020 and 10,000,000 shares of common stock can be issued in any year.
Recent Accounting Pronouncements	In February, 2016 the FASB issued ASU 20 16-0 2, “Leases (Topic 842)” requiring lessees to recognize lease assets and lease liabilities for most leases classified as operating leases under previous U.S. GAAP. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will be required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The adoption of this standard is not expected have a material impact on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Tables)	12 Months Ended
	Jun. 30, 2016
Summary Of Significant Accounting Practices Tables Abstract
Schedule of maintenance and repairs are charged to operations as incurred	Useful Life 2016 2015 Leasehold improvements 39 $ 274,869 $ 274,869 Furniture, fixtures and equipment 5 78,222 78,222 Computers and software 3 174,541 180,923 Machinery and equipment 10 720,585 477,166 Vehicles 5 412,917 412,917 Land improvements 39 67,958 67,959 Total property and equipment 1,729,092 1,492,056 Less accumulated depreciation (1,199,154 ) (1,134,549 ) Total property and equipment $ 529,938 $ 357,507

COMMITMENT AND CONTINGENCIES (T

COMMITMENT AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2016
Commitment And Contingencies
Schedule of future annual commitments under the current operating lease	Payments Amortization of Contra equity in cash account Fiscal year end June 30, 2017 $ 66,000 $ 312,000 Fiscal year end June 30, 2018 66,000 312,000 Fiscal year end June 30, 2019 66,000 312,000 Fiscal year end June 30, 2020 66,000 312,000 Total commitments $ 264,000 $ 1,248,000
Schedule of customer concentrations	Sales Accounts Receivable 2016 2015 2016 2015 Customer A 13 % 12 % 15 % * Customer B 11 % * 23 % * Customer C * * * 13 % Customer D * * * 15 % Customer E * * 20 % * *Amounts to less than 10%

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2016
Income Taxes Tables Abstract
Schedule of difference between the expected income tax expense (benefit) and the actual tax expense (benefit) computed by using the Federal statutory rate	Tax Tax 2016 Rate 2015 Rate Expected income tax benefit at statutory rate of 39% $ 162,000 39 % 0 0 % Permanent differences (126,000 ) (30 )% (3,000 ) (1.408 )% Change in valuation allowance 281,000 (9 )% 4,000 1,878 % Income tax expense (benefit) $ 245,000 59 % $ 1,000 469 %
Schedule of Temporary differences, which give rise to a net deferred tax asset recognized in different years	2016 2015 Deferred tax assets: Tax benefit of net operating loss carry-forward $ 451,000 $ 435,000 Book and tax difference 75,000 55,000 Less: valuation allowance (526,000 ) (245,000 ) Net deferred tax asset $ 0 $ (245,000 )

ORGANIZATION AND OPERATIONS (De

ORGANIZATION AND OPERATIONS (Details Narrative)	12 Months Ended
	Jun. 30, 2016
Organization And Operations
State of incorporation	Virginia
Date of incorporation	Apr. 7, 1993

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Total property and equipment, gross	$ 1,729,092	$ 1,492,056
Less accumulated depreciation	(1,199,154)	(1,134,549)
Total property and equipment, net	529,938	357,507
Leasehold Improvements [Member]
Total property and equipment, gross	$ 274,869	274,869
Property and equipment, useful life	39 years
Furniture, fixtures and equipment [Member]
Total property and equipment, gross	$ 78,222	78,222
Property and equipment, useful life	5 years
Computers and software [Member]
Total property and equipment, gross	$ 174,541	180,923
Property and equipment, useful life	3 years
Machinery and Equipment [Member]
Total property and equipment, gross	$ 720,585	477,166
Property and equipment, useful life	10 years
Vehicles [Member]
Total property and equipment, gross	$ 412,917	412,917
Property and equipment, useful life	5 years
Land Improvements [Member]
Total property and equipment, gross	$ 67,958	$ 67,959
Property and equipment, useful life	39 years

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating income (loss)	$ (446,210)	$ 10,301
Accumulated deficit	(1,236,577)	(576,682)
FDIC insured amount	250,000
Allowance for doubtful accounts receivable, current	8,362	6,539
Bad debt recovery	(1,202)	1,094
FIFO inventory amount	366,662
Work in process inventory	112,541
Inventory reserve	76,607	42,905
Research and development expense	5,700	7,491
Impairments of long-lived assets	$ 0	$ 0
Common stock issued upon conversion description	During the future fiscal years the company will be required to issued up to fifty million shares of common stock to satisfy a convertible note entered into in July 2016. This note expires on June 30, 2020 and 10,000,000 shares of common stock can be issued in any year.
Minimum [Member]
Property, plant and equipment, useful life	3 years
Maximum [Member]
Property, plant and equipment, useful life	39 years

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Sales	$ 1,781,062	$ 1,722,261
Accounts Receivable, related parties	$ 2,000	$ 0
Cahas Mountain Properties [Member]
Interest rate	6.00%	6.00%
Advances payable, related parties	$ 81,000	$ 66,000
Accrued interest payable	19,000	15,000
Interest expense	4,000	6,000
Cahas Mountain, LLC. [Member]
Sales	$ 19,000	29,000
Consulting fees		$ 32,000

COMMITMENT AND CONTINGENCIES (D

COMMITMENT AND CONTINGENCIES (Details)	Jun. 30, 2016USD ($)
Amortization Of Contra Equity Account [Member]
Fiscal year end June 30, 2017	$ 312,000
Fiscal year end June 30, 2018	312,000
Fiscal year end June 30, 2019	312,000
Fiscal year end June 30, 2020	312,000
Total commitments	1,248,000
Payments In Cash [Member]
Fiscal year end June 30, 2017	66,000
Fiscal year end June 30, 2018	66,000
Fiscal year end June 30, 2019	66,000
Fiscal year end June 30, 2020	66,000
Total commitments	$ 264,000

COMMITMENT AND CONTINGENCIES _2

COMMITMENT AND CONTINGENCIES (Details 1)		12 Months Ended
		Jun. 30, 2016		Jun. 30, 2015
Customer A [Member]
Sales		13.00%		12.00%
Accounts Receivable		15.00%			[1]
Customer B [Member]
Sales		11.00%			[1]
Accounts Receivable		23.00%			[1]
Customer C [Member]
Sales	[1]
Accounts Receivable			[1]	13.00%
Customer D [Member]
Sales	[1]
Accounts Receivable			[1]	15.00%
Customer E [Member]
Sales	[1]
Accounts Receivable		20.00%			[1]
[1]	Amounts to less than 10%

COMMITMENT AND CONTINGENCIES _3

COMMITMENT AND CONTINGENCIES (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Corporate Headquarters [Member]
Property, plant and equipment sold in exchange for cash		$ 600,000
Cahas Mountain Properties [Member]
Term of lease	5 years
Term of lease description	The Company simultaneously entered into a commercial lease agreement with the related party whereby the Company is committed to lease back these same properties for $6,800 per month over a ten-year term expiring December 31, 2014.
Operating leases, rent expense	$ 5,500

EQUITY (Details Narrative)

EQUITY (Details Narrative) - shares	12 Months Ended
	Jun. 30, 2016	Oct. 11, 2018	Jun. 30, 2015
Common stock, authorized	100,000,000		100,000,000
Common stock, issued	17,774,364
Common stock, outstanding	17,774,364		15,222,247
Preferred stock, authorized	40,000,000		40,000,000
Preferred stock, issued	0
Preferred stock, outstanding	0		0
Common stock issued upon conversion, Shares	50,000,000
Prepaid Rent [Member]
Common stock shares issued	2,400,000
Vehicle [Member]
Common stock shares issued	45,000
Emerge Nutraceuticals, Inc. [Member] | Subsequent Event [Member]
Common stock shares reserved for future issuance		30,000,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Taxes Details Abstract
Expected income tax benefit at statutory rate of 39%	$ 162,000	$ 0
Permanent differences	(126,000)	(3,000)
Change in valuation allowance	281,000	4,000
Income tax expense (benefit)	$ (245,233)	$ 931
Expected income tax benefit at statutory rate of 39%, tax rate	39.00%	0.00%
Permanent differences, tax rate	(30.00%)	(1.408%)
Change in valuation allowance, tax rate	(9.00%)	1878.00%
Income tax expense (benefit), tax rate	59.00%	469.00%

INCOME TAXES (Details 1)

INCOME TAXES (Details 1) - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Deferred tax assets:
Tax benefit of net operating loss carry-forward	$ 451,000	$ 435,000
Book and tax difference	75,000	55,000
Less: valuation allowance	(526,000)	(245,000)
Net deferred tax asset	$ 0	$ (245,000)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Change in valuation allowance	$ 281,000	$ 4,000
Federal [Member]
Net operating tax loss carry-forward	$ 1,141,000
Operating Loss Carryforward Expiry Date	2,020

STOCKHOLDER_S EQUITY (Details N

STOCKHOLDER’S EQUITY (Details Narrative) - Cahas Mountain Properties [Member]	12 Months Ended
	Jun. 30, 2016USD ($)shares
Term of lease	5 years
Lease Agreement [Member] | July 1, 2015 [Member]
Term of lease	10 years
Operating lease periodic rental payments, amount	$ 5,500
Frequency of periodic payments	Monthly
Common stock shares issued under agreement | shares	2,400,000
Fair value of stock issued under agreement	$ 1,560,000
Amortization period	5 years

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Aug. 18, 2016	Jun. 30, 2016
Description for terms of conversion factor		During the future fiscal years the company will be required to issued up to fifty million shares of common stock to satisfy a convertible note entered into in July 2016. This note expires on June 30, 2020 and 10,000,000 shares of common stock can be issued in any year.
Subsequent Event [Member] | Cahas Mountain, LLC. [Member] | Convertible Note Payable [Member]
Convertible note payable	$ 50,000
Maturity date	Jun. 30, 2019
Interest rate	8.00%
Description for terms of conversion factor	The conversion factor of the note is at par value of $.001 and is convertible into a maximum of 50,0000,000 of common stock of the company, with 10,000,000 shares being convertible within any one year